Asking price offer

newsgroupmonkey_

lookstraightahead said:

newsgroupmonkey_ said:

TXC said:

God knows I am really struggling to see anything from the seller's POV lately as I'm biased but even I agree. You can't expect them to cancel all viewings because you've been so gracious as to bless them with an offer. In their shoes I'd absolutely want to keep all viewings just to get a full profile of different buyers. As others have said, different buyers suit diffrent circumstances. If you're this impatient now then god knows what you'll be like 12-18 weeks down the line (if you're lucky)

Being an FTB with a 90% LTV though I'll just agree to disagree on thoughts on buyer one... good luck getting anywhere if you were all stuck in chains with no fresh blood to keep the market moving etc etc.

I'm not saying I wouldn't sell to you - and the fact that you're here means I'd be much more likely, because you know if you offer over asking (or a strong asking price), a surveyor is likely to under value. We're putting ours up shortly. If it gets into a bidding war, we'll be very insistent that a FTB knows this.

I'm just stating the facts of preference. Realistically, few of us get a 100% cash buyer making an offer and when they do, they often use it as a tactic to get it cheaper.

I think unfortunately for all of us too, in a seller's market, the new blood isn't needed. Right now, it's very easy to sell your house. Finding another one and having an offer accepted is a nightmare in many areas. FWIW, I was in exactly the same position as you a couple of years back. Our seller needed a quick sale and as an FTB, we were in a strong position and even got £10k knocked off the asking because of it (despite someone with a chain offering full asking).

Lenders don't under value. They value at what they believe the property is worth, as they are the ones "buying" it. Rather, the property has been "overpriced". 

OK, that quickly came out of my keyboard. They value below the offered price.

Whether a property is overpriced is in someone's opinion. That's how comparable price rises (and decreases) change.

Marvel1 said:

Deleted_User said:

I didn’t say it was personal. 

I see from the sellers perspective they are greedy and want to try to squeeze more than they advertised for and from a buyers perspective it is unfair to have them waste time looking at a property which is advertised for a price and to then be expected to offer more than that. 

Again thank you for your thoughts, I have mine and you have yours 

Spot on, if they wanted more then they should have advertised for more.

I say continue looking and book viewings.

As above. Perhaps the OP isn't as attractive a financial proposition, even though she's offered full asking price.

lookstraightahead said:

Why all this issue over FTBs when they are the ones who are enabling chains to happen?

Apart from them being maybe a little naive, it seems the reason people "don't like them" is that they haven't got the funds to plug the gap when a lender says a house is overpriced. 

Again, as has been mentioned. With a high LTV, there's no wiggle room. With a cash buyer, they might not even bother with a survey. Of course they have advantages when it comes to a chain.

I've said my piece elsewhere on the forum. I'm cool with them being naive. But please don't be offended when I don't reduce my price because there is a crack in the plaster or that the pipes could do with some lagging.

lookstraightahead

newsgroupmonkey_ said:

lookstraightahead said:

newsgroupmonkey_ said:

TXC said:

God knows I am really struggling to see anything from the seller's POV lately as I'm biased but even I agree. You can't expect them to cancel all viewings because you've been so gracious as to bless them with an offer. In their shoes I'd absolutely want to keep all viewings just to get a full profile of different buyers. As others have said, different buyers suit diffrent circumstances. If you're this impatient now then god knows what you'll be like 12-18 weeks down the line (if you're lucky)

Being an FTB with a 90% LTV though I'll just agree to disagree on thoughts on buyer one... good luck getting anywhere if you were all stuck in chains with no fresh blood to keep the market moving etc etc.

I'm not saying I wouldn't sell to you - and the fact that you're here means I'd be much more likely, because you know if you offer over asking (or a strong asking price), a surveyor is likely to under value. We're putting ours up shortly. If it gets into a bidding war, we'll be very insistent that a FTB knows this.

I'm just stating the facts of preference. Realistically, few of us get a 100% cash buyer making an offer and when they do, they often use it as a tactic to get it cheaper.

I think unfortunately for all of us too, in a seller's market, the new blood isn't needed. Right now, it's very easy to sell your house. Finding another one and having an offer accepted is a nightmare in many areas. FWIW, I was in exactly the same position as you a couple of years back. Our seller needed a quick sale and as an FTB, we were in a strong position and even got £10k knocked off the asking because of it (despite someone with a chain offering full asking).

Lenders don't under value. They value at what they believe the property is worth, as they are the ones "buying" it. Rather, the property has been "overpriced". 

OK, that quickly came out of my keyboard. They value below the offered price.

Whether a property is overpriced is in someone's opinion. That's how comparable price rises (and decreases) change.

Marvel1 said:

Deleted_User said:

I didn’t say it was personal. 

I see from the sellers perspective they are greedy and want to try to squeeze more than they advertised for and from a buyers perspective it is unfair to have them waste time looking at a property which is advertised for a price and to then be expected to offer more than that. 

Again thank you for your thoughts, I have mine and you have yours 

Spot on, if they wanted more then they should have advertised for more.

I say continue looking and book viewings.

As above. Perhaps the OP isn't as attractive a financial proposition, even though she's offered full asking price.

lookstraightahead said:

Why all this issue over FTBs when they are the ones who are enabling chains to happen?

Apart from them being maybe a little naive, it seems the reason people "don't like them" is that they haven't got the funds to plug the gap when a lender says a house is overpriced. 

Again, as has been mentioned. With a high LTV, there's no wiggle room. With a cash buyer, they might not even bother with a survey. Of course they have advantages when it comes to a chain.

I've said my piece elsewhere on the forum. I'm cool with them being naive. But please don't be offended when I don't reduce my price because there is a crack in the plaster or that the pipes could do with some lagging.

I do agree with you - they often what perfection. Although I don't remember being like that as a first time buyer (maybe my memory is fading 🤪)

But as you've stated, people don't want FTB as they can't pay over, and they'll want a survey. It sounds like vendors just want to pull the wool over their eyes.  Im not sure cash buyers wouldn't have surveys unless they're daft. 

HotPantsCruiser

lookstraightahead said:

newsgroupmonkey_ said:

TXC said:

God knows I am really struggling to see anything from the seller's POV lately as I'm biased but even I agree. You can't expect them to cancel all viewings because you've been so gracious as to bless them with an offer. In their shoes I'd absolutely want to keep all viewings just to get a full profile of different buyers. As others have said, different buyers suit diffrent circumstances. If you're this impatient now then god knows what you'll be like 12-18 weeks down the line (if you're lucky)

Being an FTB with a 90% LTV though I'll just agree to disagree on thoughts on buyer one... good luck getting anywhere if you were all stuck in chains with no fresh blood to keep the market moving etc etc.

I'm not saying I wouldn't sell to you - and the fact that you're here means I'd be much more likely, because you know if you offer over asking (or a strong asking price), a surveyor is likely to under value. We're putting ours up shortly. If it gets into a bidding war, we'll be very insistent that a FTB knows this.

I'm just stating the facts of preference. Realistically, few of us get a 100% cash buyer making an offer and when they do, they often use it as a tactic to get it cheaper.

I think unfortunately for all of us too, in a seller's market, the new blood isn't needed. Right now, it's very easy to sell your house. Finding another one and having an offer accepted is a nightmare in many areas. FWIW, I was in exactly the same position as you a couple of years back. Our seller needed a quick sale and as an FTB, we were in a strong position and even got £10k knocked off the asking because of it (despite someone with a chain offering full asking).

Lenders don't under value. They value at what they believe the property is worth, as they are the ones "buying" it. Rather, the property has been "overpriced". 

That makes sense.

Mark_Michalowski

Interesting thread.

I'm in the middle of selling my own house.

It went on the market in August for £180k. Within a fortnight I'd had over 20 viewings and ten offers - all but one above the asking price, right up to £200,000. I went with a FTB couple who promised that, in the event of a mortgage downvaluation, they could fund the shortfall.

The house was, as expected, downvalued by the mortgage company - back to £180k, which I think was based on nothing more that the estate agents' valuation, since there's nothing comparable to my house in this area for the mortgage valuer to use.

And then my buyers said "Oh, woe is us! It's been downvalued - we can only afford £180k, regardless of what we said before!"

I won't bore everyone with the rest of the story - my point/question is: if nine people were happy to bid between £1k and £20k more than the asking price (with the majority of them bidding above £190k) does that mean that the house was originally undervalued, or that all these people were overbidding....?

Mxx

[Deleted User]

Morning!

I’ve read some posts, not all. This is a forum for advice. Not to be antagonised, judged, spoken to rudely or nastily. I have been accused of raging, I haven’t been raging ( now I am) , moaning, isn’t this is forum to ask advice? I wouldn’t be on here if I didn’t feel I had a problem I needed help with? Some people have questioned our position , we are FTB with a mortgage in place and the house being sold is part of a deceased estate so neither side has a chain. Update on their position, we were told last week to make the block viewing or miss out ( unless it didn’t sell) but yesterday we were told there are now more viewings this week and the vendor is going ahead. Someone suggested I put myself in their shoes, I completely understand they want as much as they can get but for now I am in MY shoes and I offered the price they advertised. If the estate agent told them they could get more, they should advertise more. I won’t be coming back to respond again or posting here again. To the people who offered help or their own stories, thank you. That is what I came here for, some wisdom and experience from others. To the people who just had rude, patronising comments who couldn’t put themselves in anyones shoes maybe you should look at your behaviour online and ask if you would behave like it to someone’s face. 

TheJP

Deleted_User said:

Morning!

I’ve read some posts, not all. This is a forum for advice. Not to be antagonised, judged, spoken to rudely or nastily. I have been accused of raging, I haven’t been raging ( now I am) , moaning, isn’t this is forum to ask advice? I wouldn’t be on here if I didn’t feel I had a problem I needed help with? Some people have questioned our position , we are FTB with a mortgage in place and the house being sold is part of a deceased estate so neither side has a chain. Update on their position, we were told last week to make the block viewing or miss out ( unless it didn’t sell) but yesterday we were told there are now more viewings this week and the vendor is going ahead. Someone suggested I put myself in their shoes, I completely understand they want as much as they can get but for now I am in MY shoes and I offered the price they advertised. If the estate agent told them they could get more, they should advertise more. I won’t be coming back to respond again or posting here again. To the people who offered help or their own stories, thank you. That is what I came here for, some wisdom and experience from others. To the people who just had rude, patronising comments who couldn’t put themselves in anyones shoes maybe you should look at your behaviour online and ask if you would behave like it to someone’s face. 

If the house has had a lot of attention that couldn't have been fitted into the blocked out viewings then of course the sellers will keep the viewings going. They may also have had other asking price offers or offers above asking.

I'm sure your attitude towards this approach may change when the time comes to sell your house.

If this is how you react to not having an asking price offer accepted 1 day after offering and going into a weekend then you have a very rude awakening ahead of you.

I hope it works out for you and you do get to buy a house you love, we all want that for everyone on this forum. Remember the majority of people on here are well experienced in this process. Yes some replies can be sharp but we have been in your shoes before.

Good luck.

Noneforit999

Deleted_User said:

We are FTB with a mortgage in place and the house being sold is part of a deceased estate so neither side has a chain. 

You have an AIP, not a mortgage offer.  AIP is no guarantee of a mortgage offer.

Patience is the key here when it comes to buying or selling a house. The fact its part of a deceased estate means there is no reason for them to rush, they know the sale will happen and the beneficiaries will get their money. Probate likely took several months and they couldn't sell the house during that time so they know its not going to be a quick process for them and if there are multiple beneficiaries of the house sale, there may be disagreements about the sale price etc.

If you offer X, it may need to be agreed by several beneficiaries and on the basis they may not be in a rush, its entirely possible they might just be mulling things over and having a few extra viewings. 

The fact there is no chain either side doesn't mean its going to happen quickly in terms of conveyancing either so you are likely in for at least an 8-12 week wait once your offer gets accepted. 

We made an offer on a house a few months back for the asking price. It needed some 'TLC' as it had been rented previously so we felt that was a fair price. We then had to wait why another buyer had a second viewing a few days later and a phone call the following day said the vendors went with the second viewing people despite their offer being lower than ours purely because they were a cash buyer.

Cash buyer means no mortgage required which speeds up the process, it also means no lender valuation so the risk to the vendor is significantly less. 

You might think being a FTB with an AIP puts you in prime position if you offer the asking price but it doesn't. 

Ramouth

I won't bore everyone with the rest of the story - my point/question is: if nine people were happy to bid between £1k and £20k more than the asking price (with the majority of them bidding above £190k) does that mean that the house was originally undervalued, or that all these people were overbidding....?

Mxx

I have always been of the opinion that a house is worth what someone is willing to pay for it but the bank valuation is what the bank is confident of selling it for in the next few years.  This means that in a competitive market the banks valuation may be less than what someone is willing to pay because the bank is protecting itself from the risk that prices will fall when there are fewer buyers per property.  They are also keen to price based on sold prices which can become out of date pretty quickly in some areas.

newsgroupmonkey_

Deleted_User said:

Morning!

I’ve read some posts, not all. This is a forum for advice. Not to be antagonised, judged, spoken to rudely or nastily. I have been accused of raging, I haven’t been raging ( now I am) , moaning, isn’t this is forum to ask advice? I wouldn’t be on here if I didn’t feel I had a problem I needed help with? Some people have questioned our position , we are FTB with a mortgage in place and the house being sold is part of a deceased estate so neither side has a chain. Update on their position, we were told last week to make the block viewing or miss out ( unless it didn’t sell) but yesterday we were told there are now more viewings this week and the vendor is going ahead. Someone suggested I put myself in their shoes, I completely understand they want as much as they can get but for now I am in MY shoes and I offered the price they advertised. If the estate agent told them they could get more, they should advertise more. I won’t be coming back to respond again or posting here again. To the people who offered help or their own stories, thank you. That is what I came here for, some wisdom and experience from others. To the people who just had rude, patronising comments who couldn’t put themselves in anyones shoes maybe you should look at your behaviour online and ask if you would behave like it to someone’s face. 

I think you missed the point. People weren't being rude or patronising because you asked for advice, indeed, worded the correct way, I'm sure there would have been more useful posts.

I would suggest you have a sit down with the estate agent and understand how house buying works. It's a very, very slow process which can take months (or years in some cases).

I'll try and bullet some of the points without being rude.....

1. A seller (particularly probate) wants to get the absolute best price they can. One puts the house on the market for a price that they would like to get. In a market like we are currently in, it's not unusual for there to be a flurry of activity which means that the price increases. As previously, it's not like walking into a car showroom and buying a car at the advertised price. Think of it being more like eBay with a "reserve".

2. As previously, being a FTB is not an advantage. Particularly to someone selling at probate. A cash buyer who offers the same (or indeed maybe slightly less) is often going to be an easier, smoother sale. Someone with a chain is less likely to ask lots of questions or try getting money off because a wall is chipped or a door broken. Both are also far more likely to continue the sale, even if the valuer feels the property isn't worth the offer.

3. An acceptance in principle is exactly that. You're entirely reliant on the surveyor saying that the house is worth what you offered. You can't argue with them (I used in a previous post an analogy about a Football Referee - they've made their decision. You can argue all you like, but you'll simply get a yellow card)

It's not about YOUR shoes unfortunately. It's about the seller getting the most for their money. If indeed the executor is a solicitor, they are mandated to sell the property at the most they can possibly get for it. And no, it doesn't seem very fair - in fact, there's a high chance of being gazumped!

lookstraightahead

Mark_Michalowski said:

Interesting thread.

I'm in the middle of selling my own house.

It went on the market in August for £180k. Within a fortnight I'd had over 20 viewings and ten offers - all but one above the asking price, right up to £200,000. I went with a FTB couple who promised that, in the event of a mortgage downvaluation, they could fund the shortfall.

The house was, as expected, downvalued by the mortgage company - back to £180k, which I think was based on nothing more that the estate agents' valuation, since there's nothing comparable to my house in this area for the mortgage valuer to use.

And then my buyers said "Oh, woe is us! It's been downvalued - we can only afford £180k, regardless of what we said before!"

I won't bore everyone with the rest of the story - my point/question is: if nine people were happy to bid between £1k and £20k more than the asking price (with the majority of them bidding above £190k) does that mean that the house was originally undervalued, or that all these people were overbidding....?

Mxx

Your house is worth whatever the people paying for it are happy to pay. The people are usually the banks. So your house is worth £180k. If someone is a cash buyer willing to pay £200k then it's worth £200k.

it's easy to spend someone else's money. I will quite happily drink a bottle of wine that's £100 if someone else thinks it's worth it ... oh, and I don't have to pay for it 🤣